Tri-Lakes home sales increase

Home sales in the Tri-Lakes Multiple Listing Service were up 22.7 percent in 2004 compared to 2003, according to a news release from Cooper Appraisals. Nearly 2,000 homes – both existing and new – were sold through the Tri-Lakes MLS during 2004.
Both 2002 and 2003 showed strong growth rates of 18 percent and 19 percent, respectively, and while sales remained strong in 2003, they were outpaced by 2004’s 22.7 percent increase.
While other markets in the United States experienced “hyper-appreciation” of home prices as a result of low interest rates, the release stated that the residential real estate market in Branson has appreciated at a smaller, more steady rate.
Real estate professionals in the Branson market indicate that they expect sales volume will continue to rise in the Branson lakes area in 2005.
Much of the increase can be attributed to an influx of prospective buyers from outside Missouri, as individuals are selling properties in other markets and reinvesting their money in the Ozarks.
Among the top-selling types of homes are those with prices less than $175,000. However, higher-priced homes have supply-and-demand issues, with more sellers for those homes than buyers. In the Taney County market, for example, 35 homes with prices of more than $275,000 sold in the last six months.
Currently, there are 96 homes listed with prices of more than $275,000, which suggests an over-supply.
Sellers in that category may face longer periods of time during which their property is on the market, and that period may last in excess of a year.
Real estate activity in the Branson lakes area seems to be off to a strong start in 2005, with good activity reported during the winter months, which typically are slower.
Although interest rates may increase, they should continue to be relatively low, the release said.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional fixed-rate mortgage was 5.75 percent in December, compared to 5.73 percent in November and 5.88 percent in December 2003. The average 30-year rate for all of 2004 was 5.84 percent, the second-lowest annual average since Freddie Mac began tracking rates in 1971.
The lowest annual average was 5.83 percent in 2003.